According to economists who support passive policymaking
A) expansionary policies can reduce unemployment without increasing the price level.
B) policies that attempt to exploit the Phillips curve trade-off will eventually become ineffective for reducing unemployment.
C) there is no difference between the effect of an anticipated change in aggregate demand and the effect of an unanticipated change in aggregate demand of an identical amount.
D) workers always consider a change in nominal wages to be a change in real wages.
B
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Which of the following is true about an individual's choice of insurance assuming state-independent tastes?
A. Full insurance will be chosen from a full menu of actuarily fair insurance if tastes are risk averse. B. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk averse. C. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk-neutral. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above
Refer to Figure 12.6. Under a fixed exchange rate system, the central bank cannot increase the output gap with expansionary policy and still maintain the fixed exchange rate if the economy is at
A) point A. B) point B. C) point C. D) point X.
An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF) for the economy is
What will be an ideal response?
In the former Soviet Union most goods and services were produced by ____________; in the United States most goods and services are produced by _____________.
A. the government; private enterprise B. the government; the government C. private enterprise; the government D. private enterprise; private enterprise